CB Bancshares won’t
merge subsidiaries

City Bank and
International Savings will
continue as before

Star-Bulletin staff

CB Bancshares Inc. has called off its planned merger of City Bank and International Savings & Loan.

In an announcement late yesterday, the company didn't disclose why the merger was called off, other than to say operation of its two principal subsidiaries as separate institutions would be best for shareholders and customers. CB said it evaluated "all aspects of a merger scenario" before making the decision.

The company had planned combining the two institutions under pressure from shareholders and regulators to cut costs. In May, CB said it was delaying the merger for up to a year because of problems combining the institutions' computer systems.

Company officials could not be reached for comment this morning. Ronald Migita, CB president, said in a statement that the two subsidiaries are key players in Hawaii's financial marketplace and "they have established themselves successfully in serving the needs of important targeted market niches in our community."

But he said the company will continue to consolidate internal operations "that have no direct impact on our customers."

CB also reported yesterday that it earned $2.1 million, or 59 cents a share, in the quarter ended Sept. 30, compared with $2.01 million, or 56 cents, a year earlier. Its assets were essentially unchanged at about $1.4 billion.